Chile cenbank holds counter-cyclical capital buffer, cites global risks

SANTIAGO, Nov 11 (Reuters) - The board of Chile's central bank on Tuesday unanimously voted to maintain its counter-cyclical capital buffer at 0.5% of risk-weighted assets, citing external financial conditions as the main risk driver for the stability of the country's financial system.

The measure, which requires Chilean banks to set aside a cushion to absorb any potential losses, is meant to boost the economy's resilience in the face of severe stress scenarios.

"The main risk to local financial stability comes from a sudden shift in global financial conditions, either due to the materialization of risk events or signals that contradict current favorable market expectations," the bank said in a statement.

At the board's first financial policy meeting of 2026, the board will consider starting to move toward the neutral level of 1%, as long as macro-financial conditions allow, the bank added. (Reporting by Fabian Cambero; Writing by Brendan O'Boyle, Editing by Natalia Siniawski)